According to a global survey of economies around the world carried out by the American Heritage Foundation, Hungary’s economy is moderately free.
In the category of moderately free economies that runs from 60 to 69.9 points, Hungary scored 66.7 points, 0.9 of a point more than last year, putting it in 55th place from 56th last year. There are “improvements in judicial effectiveness, investment freedom, and labor freedom outpacing lower scores for the government integrity, property rights, and business freedom indicators”.
“The government has become more interventionist in recent years. Principal policy objectives include sustaining economic growth and holding down utility prices while managing the budget deficit and public debt to avoid renewed European Union sanctions. The government has indicated that it plans to use sectoral taxes and an increased role for the state to pursue these goals”, Heritage writes.
“Hungary maintains a reliable land registry, and secured interests in property, both moveable and real, are recognized and enforced. Judicial independence remains under threat. Cronyism and corruption are serious concerns, as illustrated by the difficulties experienced by business owners who have fallen out of favor with the government and the failure to investigate corruption by high-level government officials”, they added regarding the rule of law.
With over 90 points, Hong Kong was found to be the freest economy in the world on the 0-100 scale.
The Heritage Foundation looked at trade, business operations, the tax system, government spending, monetary policy, investment, the labour market, financial services, private property, and corruption. The higher the ranking, the more moderate government intervention is, according to the think-tank.